Tuesday, June 25, 2013

Seeking Alpha: Achillion May Be The Most Underrated Biotech Left

There are broadly two types of biotech investors - the Wile E. Coyote types who see bargains everywhere and charge bravely after them and the Roadrunner types that know better than to charge off a cliff and into thin air. Watch an episode or two and you'll see how the two types fare over time.

That bring me to Achillion Pharmaceuticals (ACHN) and an opportunity that looks so good, I keep wondering if it's just a false image painted on the mountainside. There have been some definite ups and downs across the sector in the race to develop new drugs for hepatitis C (HCV), but Achillion looks like the real deal. Success with Study 007 could point to a revenue opportunity of over $1 billion, while the recent addition of a nuc to the pipeline makes it a veritable one-stop shop for the next generation of HCV therapies.

All told, Achillion looks like it could easily be worth $16 today, with upside well into the $20s with good data and an ever-present possibility of a takeout. Investors need to ask themselves why this is seemingly the one biotech with good data to not participate in the sometimes-crazy biotech bull market of the last three years, but on balance this looks like a very promising biotech with value-driving events coming later this year.

Please read the full article here:
Achillion May Be The Most Underrated Biotech Left

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